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Apple Is Reinventing Itself as the World's Biggest Subscription Provider

Apple Is Reinventing Itself as the World's Biggest Subscription Provider

Tech Bloomberg
Apple is transitioning its business model to a subscription-first approach to bypass the 'sticker shock' of increasingly expensive, memory-constrained hardware.
What: Amid rising hardware prices caused by memory supply shortages, Apple is pushing its 'Apple Upgrade' leasing program to shift consumer psychology from $1,000+ lump-sum payments to daily micro-subscriptions.
Why it matters: By reframing hardware costs as a service, Apple secures recurring revenue and higher customer retention while insulating itself from the volatility of high-end device retail demand.
Original article

Apple's new Apple Upgrade leasing program hints at the company's next era of growth. Due to memory shortages, hardware prices have increased, and prices are only going to get steeper. Apple appears to be changing the psychology of the purchase. Instead of asking customers to justify spending more than $1,000 on a device, it's asking whether they can afford roughly a dollar a day, which is a much easier decision.

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